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ASR or DSDVY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Transportation - Services stocks have likely encountered both Grupo Aeroportuario del Sureste (ASR - Free Report) and DSV (DSDVY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Grupo Aeroportuario del Sureste has a Zacks Rank of #2 (Buy), while DSV has a Zacks Rank of #5 (Strong Sell). This means that ASR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

ASR currently has a forward P/E ratio of 9.28, while DSDVY has a forward P/E of 21.82. We also note that ASR has a PEG ratio of 2.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DSDVY currently has a PEG ratio of 3.11.

Another notable valuation metric for ASR is its P/B ratio of 2.25. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DSDVY has a P/B of 3.91.

These metrics, and several others, help ASR earn a Value grade of B, while DSDVY has been given a Value grade of F.

ASR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ASR is likely the superior value option right now.


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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>

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